ING latest lender to hike variable home loan rates

Tom Watson

31 Jan 2019

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Online lender ING has become the latest bank to lift its variable home loan rates following an announcement earlier today.

The lender will raise rates across all of its variable rate home loan products by 15 basis points, effective as of February 7, 2019.

The out of cycle move comes just a week after major bank NAB finally succumbed to increased funding pressure by raising a number of its key variable rate home loan products by between 12 and 16 basis points.

RELATED: Last to fall: NAB hikes home loan rates, here’s how it stacks up to the other big banks

And according to Mozo Product Data Manager, Peter Marshall, today’s decision by ING to increase rates was likely influenced by similar factors.

“It’s a pretty big move and I think it’s a reflection of the bank bill swap rate remaining elevated. A lot of banks moved rates last year to cover increased funding costs and while the bank bill swap rate did fall back a bit towards the end of last year, it has since jumped again.”

“As a result of the latest jump I think it’s very likely that we’ll see even more lenders looking to increase variable rates in the near future - something I fully expect the RBA to consider when making their rates decision.”  

Is it time to make a move?

So just how hard will the latest rates hikes from ING hit their customers pockets?

Mozo calculated that an ING owner occupier customer paying principal and interest on a  $400,000 Orange Advantage Package home loan will pay an extra $411 in repayments each year as a result of the lift from 3.78% to 3.93%.  

“The simple fact is that ING customers will now be paying more on their mortgage repayments, so now is probably the time to be looking around to see if there are any better options out there,” said Marshall.

“ING often have good rates but they’re not the best in the market, so there are plenty of other lenders, particularly smaller ones, where borrowers can go to find themselves a better deal.”  

Top 5 variable rates in the Mozo database*

3.44% - Reduce Home Loans Rate Lovers Variable Home Loan

3.49% - Easy Street Standard Variable Home Loan

3.49% - Well Home Loans Well Balanced

3.54% - FreedomLend Variable Home Loan

3.54% - Homestar Variable Rate Loan

Looking for a more competitive home loan deal? Check out some of the hot offers below, or head over to the Mozo home loan comparison tables for more great deals.   

*Rates accurate as of 31/01/2019 an calculated on a $400,000 owner occupier principal and interest home loan with an LVR of 80%

Home loan offers 2019 - rates updated daily

  • Promoted

    loans.com.au

    3.03% p.a.

    3.05% p.a.

    $1234

    Product details Close details
    Smart Home Loan

    A low-rate home loan that could save you thousands. No application or ongoing fees. Unlimited additional repayments. Unlimited free redraws with no minimum redraw amount, Limited time only.

    • 3.03% p.a.

    • 3.05% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Smart Home Loan

  • Promoted

    UBank

    3.09% p.a.

    3.09% p.a.

    $1234

    Product details Close details
    UHomeLoan - Discount Offer

    One of Australia's leading digital banks. Easy & fast to apply. Free redraw with flexible repayments. Min. 20% deposit required. Low rate and no bank fees (on variable loans). Winner of a Mozo Experts Choice Award 2019 in the Low Cost Home Loan category.^

    • 3.09% p.a.

    • 3.09% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $200,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the UHomeLoan - Discount Offer

  • Promoted

    ANZ

    3.38% p.a.

    3.42% p.a.

    $1234

    Product details Close details
    Simplicity PLUS Special Offer LVR <80%

    Competitive low rate. No upfront or monthly fees. Flexibility to make extra repayments and redraw. Plus, score 300,000 bonus Qantas Points when you apply for a home loan over $300,000 by 31 August 2019, and settle by 31 Jan 2020. Minimum 20% deposit required.

    • 3.38% p.a.

    • 3.42% p.a.

    • $0

    • $0.00

    • $160.00

    • yes - free

    • yes

    • no

    • 80.00%

    • $50,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • Apply for a home loan over $300,000 by 31 August 2019, and settle by 31 Jan 2020 to earn 300,000 Qantas Points.

    Read our Mozo Review to learn more about the Simplicity PLUS Special Offer LVR <80%

  • Promoted

    Athena

    3.09% p.a.

    3.05% p.a.

    $1234

    Product details Close details
    Variable Home Loan

    Low rates, no fees, and automatic rate match. New-comer Athena wants you to love them and leave them. Refinance only. Minimum 20% deposit.

    • 3.09% p.a.

    • 3.05% p.a.

    • $0

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Variable Home Loan

  • Promoted

    Homestar

    2.99% p.a.

    3.02% p.a.

    $1234

    Product details Close details
    Star Essentials Home Loan

    One of the lowest home loan rate in town packed with essential features. No application or ongoing fees. Unlimited additional repayments with free online redraws. Min. loan size $150k, no construction loan.

    • 2.99% p.a.

    • 3.02% p.a.

    • $596

    • $0.00

    • $535.00

    • yes - free

    • yes - free

    • no

    • 80.00%

    • $150,000

    • $850,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Star Essentials Home Loan

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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